AC201 week 1 discussion

Ch2q1 describe the steps in processing business

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---------------------------------------------- CH2Q1: Describe the steps in processing business transactions. Identify the accounts affected to determine whether or not it is a business transaction (increase or  decrease of the affected account). The transaction must then be recorded and accounted for.  Once the  business transaction is recorded (usually in an accounting journal of some type), then the transaction will  make its way to be reported on a statement or balance sheet to make sure that all transactions are  accurately accounted for.     CH2Q2: What kind of transactions can be recorded in the general journal? All transactions can be documented in a General Journal, but be aware that a general journal  may require another means as a backup with more details on the recorded transactions.  (The general 
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journal is sometimes called the book of original entry. This means that source documents are reviewed  and interpreted as to the accounts involved. Then, they are documented in the journal via their debit/credit  format. As such the general journal becomes a log book of the recordable transactions and events.) CH2Q3: Why is a trial balance prepared?
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